The front of Westchester Medical Center in Valhalla. Saint Francis filed a notice with the Bankruptcy Court asking for approval of its sale to Westchester Medical. / Courtesy photo

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Luke McGuinness

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Health Quest said Tuesday it decided “not to participate further” in the bidding process to acquire Saint Francis Hospital in Poughkeepsie after the bankrupt Saint Francis made clear it plans to go with Westchester Medical Center.

This was a dramatic change in a story that looked like it would focus on a bidding war between Health Quest and Westchester Medical. Instead, Saint Francis filed a notice with the Bankruptcy Court late Monday, canceling the planned auction between the two bidders and asking for approval of its sale to Westchester Medical.

These are a selection of statements, quotes and items from the documents over the course of the past two days that depict the evolution of the story:

From a statement issued Monday from Health Quest CEO Luke McGuinness:

“Our bid is designed to fulfill the commitment we made to Saint Francis when its board asked us to take it over: maintain mental health, chemical dependency and detox, early childhood development, and trauma services. ... At the same time we would maintain medical surgical beds at Saint Francis, as well as its emergency room. It’s vital that patients have access to these services in Dutchess County and aren’t forced to travel great distances to receive them.”

From a statement issued Monday by Westchester Medical Center:

• “Our vision for Saint Francis Hospital is simple: from day one to work together to enhance and strengthen all of their fine services including the Level Two Trauma Center, emergency department, intensive care units and critical psychiatric services, while introducing additional advanced-care offerings locally to more patients in areas such as orthopedics, cancer, neurosciences, trauma and critical care, and cardiovascular.”

From a letter sent Monday, Feb. 10, to Saint Francis from the Federal Trade Commission:

• “Although our investigation is ongoing, based on our review of the evidence to date, (the Federal Trade Commission) staff has significant concerns that a potential Health Quest acquisition of Saint Francis violates the antitrust laws.”

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From a notice filed Monday in federal Bankruptcy Court by Saint Francis Hospital:

• “(Saint Francis Hospital gives) notice that the Auction scheduled for February 13, 2014 is canceled and that (Saint Francis intends) to seek the approval of a sale of substantially all of their assets to Westchester Country Health Care Corporation.”

• “Based upon conversations with both the Federal Trade Commission and the New York State Office of the Attorney General (collectively, the “Regulators”) it is apparent to (Saint Francis Hospital) and their professionals that (Health Quest) would either never be permitted to close a sale with (Saint Francis), or would face significant difficulties in doing so, in light of the fact that (Saint Francis) received a bid for the Purchased Assets from a party other than (Health Quest).”

• “The prospect of holding a ‘sham’ auction between two bidders (one of whom, in (Saint Francis’) opinion, could not obtain the requisite regulatory approvals — i.e. (Health Quest)) would be a tremendous waste of time and estate resources.”

• “During the course of discussions with the Regulators, it became apparent that there was a significant risk that the Stalking Horse would be unable to close on any offer it made, regardless of the purchase price.”

• “(Westchester Medical Center) informed (Saint Francis Hospital) that it intended to submit only the minimum overbid at the auction, and that it would not add any further consideration during the auction because it believed that (Saint Francis) would determine, under their business judgment, that any bid submitted by (Westchester Medical Center) would be “better” than (Health Quest’s) bid, regardless of whether or not it was higher.”

• “If (Health Quest) failed to obtain the necessary regulatory approvals, (Saint Francis Hospital) would be forced to convert these cases to ones under chapter 7 and cease its operations under a plan of closure. This would be a catastrophe not only for (Saint Francis’) creditors, but also for (the entire) Hudson Valley community which receives services from (Saint Francis).”

“It is important to note that Health Quest’s involvement, substantial financial commitment and comprehensive plan for saving Saint Francis were responsible for keeping the hospital open in the days and weeks since its declaration of bankruptcy. While we are disappointed that Saint Francis Hospital will not become part of the Health Quest family, we are proud that it was our willingness to step forward on behalf of the community that allowed Saint Francis Hospital to remain financially solvent and in a position to continue to provide care during this bankruptcy process.”